If you aren’t living under a rock then you have probably heard people talking about a recession. I read a quote recently that said, “A recession is when your neighbor loses their job. A depression is when you lose your job.” What is a recession? A recession can be defined as a period of economic decline, usually a decline in GDP for two quarters.
What can people do to protect themselves during a recession?
Even if someone doesn’t lose their job, many may see their hours or pay cut. Employers may also cut back on raises and bonuses. So what do people do? The economy will slow down and you probably won’t be spending as much, so save your money. It seems that everyone will eventually have a rainy day. Try to build up that emergency fund. Also, try to minimize your debt. Especially high-interest debt. And try to keep investing. Sounds easy, right?
Many people lost their jobs in the last recession. So, it’s not a bad idea to update your resume and network with people. Upload your resume on apps like LinkedIn, Zip Recruiter, and Indeed.
Start a side hustle. There will be many people looking for jobs trying to support themselves and their families. So the job market could become very competitive. Everyone is good at something and can monetize it somehow. Maybe, you’re great at cleaning and organizing. Or maybe you enjoy mowing your lawn. You’d be surprised, but a few customers a week could make a major difference in your finances. Check out the article I wrote, “How I paid my mortgage mowing lawns”. I tried to break it down in that article to show that it is possible to start and build something as simple as lawn mowing. Many others can do the same. Don’t be afraid to start something, just go. Utilize the tools available to market your skills, like Google My Business page, Facebook, Instagram, and Nextdoor, or put business cards at hair salons. So many options to help launch a business today, especially with the internet. Whether we are in a recession or not. These are great qualities people can start practicing.
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